Indian Rupee weakens past 94/$ on elevated crude prices, firm US dollar

Indian Rupee: The Indian rupee continued to remain under pressure on Monday, March 23, depreciating beyond the ₹94 per US dollar mark in offshore trade for the first time. The decline in the domestic currency, analysts said, reflects a combination of elevated crude prices, persistent foreign outflows, and a structurally strong US dollar, while attributing the weakness to the ongoing war in West Asia, which has fueled safe-haven demand for the US dollar.

 

The rupee opened at 93.738 against its previous close of 93.672. At the last check, it was quoted at 93.928 against the US dollar, trading in a range of 93.692–94.004 during the day.

 

 

According to Hariprasad K, research analyst and Founder of Livelong Wealth, “The fall in the Indian rupee reflects elevated crude prices, persistent foreign outflows, and a structurally strong US dollar. This sharp depreciation not only signals capital flight but also amplifies imported inflation risks, complicating the macro outlook.”

 

Meanwhile, Ponmudi R, CEO of Enrich Money, attributed the rupee’s weakness to elevated crude prices driving safe-haven demand for the US dollar. “Elevated crude prices and geopolitical tensions are driving safe-haven demand for the US dollar, putting pressure on emerging market currencies. Technically, the structure remains bullish with higher highs and higher lows,” he said.

 

A sustained move above 94.00, Ponmudi believes, could push the pair toward fresh highs. “Immediate support is placed at 93.6–93.8. Overall, the outlook remains constructive for USD/INR, with continued pressure on the rupee amid global uncertainty,” he added.

 

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent higher at 99.66.

 

In the commodity segment, Brent crude futures were quoted at $112.78 per barrel, up 0.53 per cent, while WTI crude futures rose 0.82 per cent to $99.04 per barrel.

 

On the equity front, Indian benchmark indices reflected the global risk-off mood. The NSE Nifty50 was trading lower by 458 points, or 1.98 per cent, at 22,656, while the BSE Sensex was quoted at 73,074, down 1,458 points, or 1.96 per cent.

 

Meanwhile, foreign institutional investors offloaded equities worth ₹5,518.39 crore on a net basis on Friday, March 20, 2026, according to NSE data. Separately, the Reserve Bank of India (RBI) said the country’s foreign exchange reserves declined by $7.052 billion to $709.759 billion for the week ended March 13, 2026.

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